trading halt, page-45

"Linc Energy

Underground coal gasification company Linc Energy has timed its capital raising pretty well.

Linc shares were placed in a trading halt yesterday at $2.67, up from about 57 cents in November, as it looks to raise a reported $200 million to $240 million in convertible bonds.

Media reports indicate that the bond issue will be around $3.40-$3.50 per share that can be converted in 2018. That’s about a 30 per cent premium to the current share price and simply incomparable to the levels Linc was trading at just a few months ago.

Linc shares have rocketed on a series of compelling drilling results, particularly at South Australia’s Arckaringa Basin, as well as rumours that Russian billionaire Roman Abramovich has his eye on Linc’s oil reserves.

Linc boss Peter Bond holds 39.6 per cent of the company either directly or through family and associated interests. With the stock at its highest levels since July, that stake is worth $546.5 million.

The company is likely to channel the money into its exploration program, with Linc already looking at bringing in a partner with shale oil expertise. Barclays was tapped earlier this year to find such a partner.

And just last month the competition watchdog said it would allow Linc to bid in conjunction with companies like Whitehaven Coal, Endocoal, QC Resource Investments and Yancoal Australia for access to Aurizon’s proposed rail line between Queensland’s Galille Basin, Abbot Point and Dudgeon Point."



Read more: http://www.businessspectator.com.au/article/2013/3/28/resources-and-energy/breakfast-deals-strong-linc#ixzz2OmIr27iT

Not bad. But not exact either.